The acquisition represents a small 2% premium over Nstar's Friday closing price. The move was called a merger of equals, but NU will own 56% of the combined business, while NST will own 44%.
Current Nstar shareholders will receive 1.312 shares of NU for each NST share they own.
The proposed transaction is subject to the approval of both companies' shareholders, as well as regulatory permissions.
Northeast Utilities shares were mostly flat in premarket trading Monday.
The Bottom Line
Shares of Northeast Utilities( NU ) have a dividend yield of 3.34%, based on Friday's closing stock price of $30.70. The stock has technical support in the $28 price area. The shares are trading just shy of all-time highs around the $33 price level.
Northeast Utilities System( NU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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